What happend to the "Sony is going to buy Rockstar" rumor?

[Grimes]

Showertea said:

Grimes said:

GM is a huge company too, that don't mean squat if expenses are high and there is a lot of debt and expenses.

Assets can carry debt and expenses, they aren't money in the bank. An unprofitable asset may be worse than owning no asset, because the asset carries debt which may be greater than the money that could obtain by selling that asset. The expenses for that asset could be greater than revenue generated as well.

Nintendo has more liquid assets than Sony. Literally more money sitting in the bank doing nothing. Nintendo is a ridiculously conservative company, and has also been ridiculously profitable over the last 20 years.

 

Sony didn't buy Rockstar because they don't have the money. I doubt anyone has the money, or incentive, to buy them. Buying Rockstar would cost hundreds of millions of dollars.

 

If you look at their balance sheets they have about $6 billion more debt than cash.

Contrast that to a company like Microsoft which has about $27.5 more cash than debt.

It's pretty clear that if MS wanted to buy it they easily could. Whether it makes business sense is a different question.

Some people think that a company like Rockstar is a gold mine, but even gold mines can lose money in the real world.